Last updated: March 13, 2018

How Does VAT Work on Adult Pledge?

Please Note: VAT on Adult Pledge is determined by patron location at the time of making the pledge.

If you're not yet familiar with the basics of VAT, we first recommend checking out these helpful starter articles:

How VAT Works

VAT - Supplying Digital Services To Private Consumers

Here’s some general information on VAT and how we handle it on Adult Pledge. For more info and advice on your specific situation, we recommend you talk with a tax advisor or local tax authority.

VAT (Value Added Tax) is a consumption-based tax that’s assessed on the value added to goods and services -- including digital. It’s charged as a percentage of price (so on Adult Pledge, a $10.00 pledge with 23% VAT will have a final cost of $12.30).

Starting in 2015, the European Union changed regulations for how VAT is calculated on sales of digital services. It is now determined by the location of the consumer, not the location of the business. This also applies to independent content creators like the ones on Adult Pledge.

Instead of putting the burden on Adult Pledge creators to collect and calculate VAT chargeable to EU-based backers, Adult Pledge will handle it. We will automatically present and collect VAT at the applicable rate from EU-based backers, and we will also take care of the filing and remittance of VAT payments made by backers for digital services provided by our creators through Adult Pledge. Creators, whenever you see your backers’ payments, account balances, etc. on Adult Pledge, VAT chargeable to backers for digital services has already been deducted.

For creators based in the EU, you will not need to remit VAT charged to backers for digital services on your Adult Pledge page because we are handling that for you. If your rewards include physical goods or other things besides digital services we recommend you consult with a local tax advisor or local tax authority for information on the VAT due for those goods. We also recommend that you consult with a tax advisor or local tax authority to confirm that by using the Adult Pledge platform you will not be required to register for and collect VAT.

So in short -- creators, don’t worry about collecting VAT from backers -- we’ve got you covered and are handling everything automatically, behind the scenes.

Here’s an example of how EU-based backers will see what VAT is to be charged before they make a pledge:

The following table provides the VAT rate that each country requires (this list is not exhaustive, please speak with a local tax advisor on the VAT for your specific country):

Country Value-Added Tax Rate
Austria 20.00%
Belgium 21.00%
Bulgaria 20.00%
Croatia 25.00%
Cyprus 19.00%
Czech Republic 21.00%
Denmark 25.00%
Estonia 20.00%
Finland 24.00%
France 20.00%
Germany 19.00%
Greece 23.00%
Hungary 27.00%
Ireland 23.00%
Italy 22.00%
Latvia 21.00%
Lithuania 21.00%
Luxembourg 17.00%
Malta 18.00%
Netherlands 21.00%
Peru 17.00%
Poland 23.00%
Portugal 23.00%
Romania 20.00%
Slovakia 20.00%
Slovenia 22.00%
Spain 21.00%
Sweden 25.00%
United Kingdom of Great Britain and Northern Ireland 20.00%

This page has covered some general information on VAT and how we handle it on Adult Pledge. For more info and advice on your specific situation, we recommend you talk with a tax advisor or local tax authority.

I Shouldn't be Charged VAT, How Do I Delete it from My Pledges?

VAT is determined by your location when you create a new pledge.

To remove VAT from your pledge, you can delete your pledge and re-pledge to your creator while you are in a country that does not charge VAT.

Note: Except in extreme rare cases, Adult Pledge does not grant refunds for VAT charged to pledges.

{{shellCtrl.loadingMessage}}